Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall 13 Chapter Thirteen Public Relations and Sponsorship Programs 13-1

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Identify internal and external stakeholders Assess the corporate reputation Audit corporate social responsibility Create positive image-building activities Prevent or reduce image damage F I G U R E Public Relations Functions 13-2

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Employees Unions Shareholders Channel members Customers Media Local community Financial community Government Special-interest groups F I G U R E Stakeholders 13-3

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall oDiscrimination oHarassment oPollution oMisleading communications oDeceptive communications oOffensive communications oEmpowerment of employees oCharitable contributions oSponsoring local events oSelling environmentally safe products oSupport community events Image Destroying Activities Image Building Activities F I G U R E Examples of Activities that Affect a Company’s Image Corporate Social Responsibility Audit 13-4

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Creating a Positive Image Cause-related marketing Green marketing Pro-environment 13-5

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Cause-Related Marketing Tie a marketing program to a charity in order to generate goodwell Businesses pay over $600 million in cause-related marketing Consumer studies: Nearly 50% switch brands, increase usage, try new brand 46% felt better about using product when company supported a particular cause Cause liked by one – disliked by another Choose a cause that is the most popular 13-6

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Improve public schools (52%) Dropout prevention (34%) Scholarships (28%) Clean-up environment (27%) Community health education (25%) F I G U R E Causes Consumers Prefer 13-7

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Cause-Related Marketing Cause should relate to firm’s business Good fit important Benefits not-for-profit organization Not-for-profit organizations compete for dollars Publicizing causes If publicizes too much, public will recognize companies need to benefit Should publicize, but not significant amount 13-8

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Green Marketing Survey concerning green marketing Try to save electricity (58%) Recycle newspapers (46%) Return bottles and cans (45%) Buy products –recycled materials (23%) Consumers not willing to sacrifice Price Quality Convenience Availability Performance 13-9

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Pro-Environment Activities Low-key approach Coca-Cola doesn’t publicize its recycling program Publicize product benefit (less gas) first, pro- environment second (less pollution) Prius Promote pro-environment The Body Shop Honest Tea (biodegradable tea bags) 13-10

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Proactive Strategies Entitling (claim responsibility for positive outcomes – Olympic team) Enhancements (exaggerate on the positive outcome – Low fat) Reactive Strategies Internet interventions Crisis management programs Impression management techniques F I G U R E Damage-Control Strategies 13-11

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall 1.An expression of guilt, embarrassment, or regret. 2.Statement recognizing inappropriate behavior and acceptance of sanctions because of wrong behavior. 3.Rejection of the inappropriate behavior. 4.Approval of the appropriate behavior and a promise not to engage in the inappropriate behavior again. 5.An offer of compensation or penance to correct the wrong. F I G U R E Elements of an Apology Strategy A Crisis Management Technique 13-12

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Impression Management Conscious or unconscious attempt to control image Remedial tactics Expression of innocence Excuses Justifications Other explanations 13-13

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Intel’s Response to a Crisis In 1994, a glitch in Intel’s microprocessors was made public. Not only did Intel avoid a crisis, they actually benefited from the glitch. After listening to Dennis Carter, discuss why you think Intel was able to benefit from this crises rather than suffer damage to their brand. Click icon for video

Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall Sponsorship Marketing Objectives Enhance company image Increase firm visibility Differentiate a company or brand Showcase specific goods or services Develop a closer relationship with current and prospective customers 13-15